LOCAL TREASURY OPERATIONS

MANUAL

FISCAL ORGANIZATION OF LOCAL

GOVERNMENTS AND THE LOCAL
TREASURR

BOOK ONE
Chapter 1 FISCAL ORGANIZATION OF LOCAL GOVERNMENTS

Section 1. Political and Corporate Nature of Local Government Units. - Every local
government unit created or recognized under R. A. No. 7160 or the Local Government Code
of 1991, is a body politic and corporate endowed with powers to be exercised by it in
conformity with law. As such, it shall exercise powers as a political subdivision of the National
Government and as a corporate entity representing the inhabitants of its territory. (Sec. 15,
LGC)

Section 2. Authority to Create Local Government Units. - A local government unit may
be created, divided, merged, abolished, or its boundaries substantially altered either by law

enacted by Congress in the case of a province, city, municipality, or any other political

subdivision, or by ordinance passed by the sangguniang panlalawigan or sangguniang

panlungsod concerned in the case of a barangay located within its territorial jurisdiction,
subject to such limitations and requirements prescribed in R. A. No. 7160 or the Local
Government Code of 1991. (Sec. 6, LGC)

Section 3. Common Requirements for Creation and Conversion. - As a general rule, the
creation of a local government unit or its conversion from one level to another level shall
be
based on verifiable indicators of viability and projected capacity to provide services, to wit:
a. Income - it must be sufficient, based on acceptable standards, to provide for all essential
government facilities and services and special functions commensurate with the size of its
population, as expected of the local government unit concerned; (DOF)

b. Population - it shall be determined as the number of inhabitants, within the territorial

jurisdiction of the local government unit concerned; and (NSO)

c. Land Area - it must be: (LMB-DENR)

l) Contiguous, unless it comprises two or more islands or 1s separated by a local

Government unit independent of the others;

2) Properly identified by metes and bounds with technical descriptions; and

3) Sufficient to provide for such basic services and facilities to meet the requirements of
its populace.

Compliance with the foregoing indicators shall be attested to by the Department of

Finance (DOF), the National Statistics Office (NSO), and the Lands Management Bureau
(LMB) of the Department of Environment and National Resources (DENR). (Sec. 7, LGC)

Section 4. Division and Merger. - Division and merger of existing local government units
shall comply with the same requirements prescribed for their creation: Provided,
however, That such division shall not reduce the income, population, or land area of the
local government unit or units concerned to less than the minimum requirements
prescribed in R. A. No. 7160 or the Local Government Code of 1991: Provided, further,
That the income classification of the original local government unit or units shall not fall
below its current income classification prior to such division.
 The income classification of local government units shall be updated within six (6) months
from the effectivity of R. A. No. 7160 or the Local Government Code of 1991, to reflect the
changes in their financial position resulting from the increased revenues as provided in the
same code.(Sec. 8, LGC)

Section 5. Requisites for Creation of Local Government Units. - A local government unit
may be created, classified, divided, merged, abolished, or their boundaries substantially altered

in accordance with the criteria provided for by R. A. No. 7160 or the Local Government Code
of 19912, as follows:

a) Creation of the Province. - A province may be created, divided, merged, abolished, or

its boundary substantially altered only by an Act of Congress and subject to approval
by a majority of the votes cast in a plebiscite to be conducted by the COMELEC in the
local government unit or units directly affected. The plebiscite shall be held within one
hundred twenty (120) days from the date of effectivity of said Act, unless otherwise
provided therein. (Sec. 460, LGC)

A province may be created if it has an Average Annual Income, as certified by the

Department of Finance, of not less than Twenty Million Pesos (P 20,000,000.00), for the
immediately preceding two (2) consecutive years based on 1991 constant prices. The
Average Annual Income shall include the income accruing to the General Fund, exclusive of
special funds, trusts funds, transfers, and non-recurring income. It shall further comply with
either of the following requisites:

1) A contiguous territory of at least two thousand (2,000) square kilometers, as certified

by the Lands Management Bureau; or

2) A population of not less than two hundred fifty thousand (250,000) inhabitants, as
certified by the National Statistics Office.

Provided That, the creation thereof shall not reduce the land area, population, and income
of the original unit or units at the time of said creation to less than the minimum requirements
prescribed.

The territory need not be contiguous if it comprises two (2) or more islands or is separated
by
a chartered city or cities which do not contribute to the income of the province. (Sec. 461,
LGC)

b) Creation of the City. - A city may be created, divided, merged, abolished, or its boundary
substantially altered, only by an Act of Congress, and subject to the approval by a majority of the
votes cast in a plebiscite to be conducted by the COMELEC in the local government unit

1 Sec. 460, Sec. 461 and Sec. 462, for the Province; Sec 449, Sec. 450, as amended by R.A. 9009, and Sec. 451, for the CihJ;
Sec. 452 and Sec. 453, for the Highly Urbanized CihJ; Sec. 441 and Sec. 442, for the Municipality; and Sec. 385 and Sec. 386,
for the Barangay.
or units directly affected. Unless otherwise provided in such Act, the plebiscite shall be
held
within one hundred and twenty (120) days from the date of its effectivity. (Sec. 449, LGC)

A municipality or a cluster of barangays may be converted into a component city if it has

a locally generated Average Annual Income, as certified by Department of Finance, of at
least One Hundred Million Pesos (P 100,000,000.00), for the last two (2) consecutive
years based on 2000 constant prices. The Average Annual Income shall include the
income accruing to the General Fund, exclusive of special funds, transfers, and non-
recurring income. It shall further comply with either of the following requisites:

1) A contiguous territory of at least one hundred (100) square kilometers, as certified

by
the Land Management Bureau; or

2) A population of not less than one hundred fifty thousand (150,000) inhabitants
as
certified by the National Statistics Office.

Provided, That, the creation thereof shall not reduce the land area, population, and income
of
the original unit or units at the time of said creation to less than the minimum
requirements
prescribed.

The territorial jurisdiction of a newly created city shall be properly identified by metes
and bounds. The requirements on land area shall not apply where the city proposed to be
created is composed of one (1) or more islands. The territory need not be contiguous if it
comprises two (2) or more islands. (Sec. 450, LGC, as amended by R.A. 90093)

A city may either be component or highly urbanized: Provided, however, That the criteria
established in the Local Government Code of 1991 shall not affect the classification
and corporate status of existing cities.

Independent component cities are those component cities whose charters prohibit their
voters from voting for provincial elective officials. Independent component cities shall
be independent of the province. (Sec. 451, LGC)

c) Highly Urbanized Cities. - Cities with a minimum population of two hundred

thousand (200,000) inhabitants, as certified by the National Statistics Office, and with the
latest Annual Income of at least Fifty Million Pesos (P 50,000,000.00), based on 1991
constant prices, as certified by the City Treasurer, shall be classified as a highly urbanized
cities.

Cities which do not meet the above requirements shall be considered component cities of
the province in which they are geographically located. If a component city is located
within the boundaries of two (2) or more provinces, such city shall be considered a
component of the province of which it is used to be a municipality.
2
An Act Amending Section 450 of R. A. No. 7160, by Increasing the Average Annual Income Requirement for a Municipality or
Cluster of Barangays to be Converted into a Component City.
 Qualified voters of highly-urbanized cities shall remain excluded from voting fr elective
provincial officials.

Unless otherwise provided in the Constitution or the Local Government Code of 1991,
qualified voters of independent component cities shall be governed by their respective
charters, as amended, on the participation of voters in provincial elections.

Qualified voters of cities who acquired the right to vote for elective provincial officials prior
to the classification of said cities as highly-urbanized after the ratification of the Constitution
and before the effectivity of the Local Government Code of 1991, shall continue to exercise
such right. (Sec. 452, LGC)

d) Creation of the Municipality. - A municipality may be created, divided, merged, abolished,

or its boundary substantially altered only by an Act of Congress and subject to the
approval by the majority of the votes cast in the plebiscite to be conducted by the
COMELEC in the local government unit or units directly affected. Except as may
otherwise be provided in the said Act, the plebiscite shall be held within one hundred
twenty (120) days from the date of its effectivity. (Sec. 441, LGC)

The requisites for the creation of a municipality are the following:

l) An Average Annual Income, as certified by the Provincial Treasurer, of at least Two

Million Five Hundred Thousand Pesos (P 2,500,000.00) for the last two (2)
consecutive years based on 1991 constant prices;

2) A population of at least twenty-five thousand (25,000) inhabitants, as certified by the

National Statistics Office; and

3) A contiguous territory of at least fifty (50) square kilometers, as certified by the

Lands Management Bureau.

Provided, That the creation thereof shall not reduce the land area, population or income of
the original municipality or municipalities at the time of said creation to less than the
minimum requirements prescribed.

The Average Annual Income shall include the income accruing to the General Fund of the
municipality concerned, exclusive of special funds, transfers and non-accruing income.

The territorial jurisdiction of a newly created municipality shall be properly identified by

metes and bounds. The requirement on land area shall not apply where the municipality
proposed to be created is composed of one ( l ) or more islands. The territory need not be
contiguous if it comprises two (2) or more islands. (Sec. 442, LGC)
e) Creation of the Barangay. - A barangay may be created, divided, merged, abolished, or
its boundary substantially altered, by law or by an ordinance of the sangguniang
panlalawigan or sangguniang panlungsod, subject to approval by a majority of the votes cast
in a plebiscite
to be conducted by the COMELEC in the local goverment unit or units directly affected
within such period of time as may be determined by the law or ordinance creating said
barangay. In the case of creation of barangays by the sangguniang panlalawigan, the
recommendation of the sangguniang bayan concered shall be necessary. (Sec. 385, LGC)

A barangay may be created out of contiguous territory which has a population of at least two
thousand (2,000) inhabitants, as certified by the National Statistics Office, except in cities
and municipalities within Metro Manila and other metropolitan political subdivisions or in
highly urbanized cities where such territory shall have a certified population of at least five
thousand (5,000) inhabitants; Provided, That the creation thereof shall not reduce the
population of the original barangay or barangays to less than the minimum requirement
prescribed.

To enhance the delivery of the basic services in the indigenous cultural commumtles,
barangays may be created in such communities by an Act of Congress, notwithstanding the
above requirement.

The territorial jurisdiction of the new barangay shall be properly identified by metes and
bounds or by more or less permanent natural boundaries. The territory need not be
contiguous if it comprises two (2) or more islands.

The goveror or city mayor may prepare a consolidation plan fr barangay, based on the
foregoing criteria, within his territorial jurisdiction. The plan shall be submitted to the
sangguniang panlalawigan or sangguniang panlungsod concerned fr appropriate action.

In the case of municipalities within the Metropolitan Manila area and other metropolitan
political subdivisions, the barangay consolidation plan shall be prepared and approved by the
Sanggunian Bayan concered. (Sec. 386, LGC)

Section 6. Division and Merger of Local Government Units. - Division and merger of
existing local goverment units shall comply with the same requirements prescribed for their
creation under the Local Goverment Code of 1991: Provided, however, That such division
shall not reduce the income, population, or land area of the local goverment unit or units
concered to Jess than the minimum requirements prescribed in the same Code: Provided,
further, That the income classification of the original local goverment unit or units shall not
fall below its current income classification prior to such division.

The income classification of local government units shall be updated within six (6) months
from
the effectivity of the Local Government Code of 1991 to reflect the changes in their financial
position resulting from the increase in revenues as provided in the same Code. (Sec. 8. LGC)

Section 7. Abolition of Local Government Units. - A local goverment unit may be

abolished when its income, population, or land area has been irreversibly reduced to less than
the minimum standards prescribed for its creation under Book III of the Local Government
Code of 1991, as certified by the national agencies mentioned in Section 7 of the same Code, to
Congress or to the sanggunian concered, as the case may be.
The law or ordinance abolishing a local goverment unit shall specify the province,
city, municipality, or barangay with which the local goverment unit sought to be
abolished will be incorporated or merged. (Sec. 9, LGC)

Section 8. Creation, Division or Abolition of Local Government Units in the

Autonomous Region in Muslim Mindanao (ARMM). - (a) The Regional Assembly of
the Administrative Region in Muslim Mindanao (ARMM) may create, divide, merge,
abolish, or substantially alter boundaries of provinces, cities, municipalities, or
barangay within the region in accordance with the criteria laid down by Republic Act
No. 7160, the Local Goverment Code of 1991, as specified in the preceding sections ,
subject to the approval by a majority of the votes cast in a plebiscite in the political units
directly affected.

(b) The ARMM Regional Assembly may prescribe standards lower than those
mandated under Republic Act No. 7160, the Local Goverment Code of 1991, in the
creation,'division, merger, abolition, or alteration of the boundaries of provinces,
cities, municipalities, or barangay. Provinces, cities, municipalities, or barangay
created, divided, merged, or whose boundaries are altered without observing the
standards prescribed by Republic Act No. 7160, the Local Goverment Code of 1991,
shall not be entitled to any share of the taxes that are allotted to the local goverment units
under the provisions of the same Code.

(c) The holding of a plebiscite to dete1mine the will of the majority of the voters of the
areas affected by the creation, division, merger, or whose boundaries are being altered as
required by Republic Act No. 7160, the Local Government Code of 1991, shall, however,
be observed. (Sec. 19, Act. V, R. A. No. 90543, amending R. A. No. 67344)

(d) The Autonomous Region in Muslim Mindanao (ARMM) 1s composed of the

following provinces and cities (Sec. I (2), Art. I R. A. No. 9054):

Provinces: Cities:
Basilan Cotabato
Cotabato Dapitan
Davao de! Sur Dipolog
Lanao de! Norte General Santos
Lanao de! Sur Iligan
Maguindanao Kidapawan
Palawan Marawi
Sarangani Pagadian
South Cotabato Puerto Princesa
Sultan Kudarat Digos
Sulu Koronadal
Tawi-Tawi Tacurong

3 An Act to Strengthen and Expand the Organic Act for the Autonomous Region in Muslim Mindanao, Amending for
the Purose R. A. No. 6734, as Amended.
4 An Act Providingfor the Autonomous Region in Muslim Mindanao
 l
Zamboanga del Norte Zaboanga

Zamboanga del Sur

Zamboanga Sibugay

Chapter 2 APPOINTMENT,QUALIFICATIONS,POWERS AND

FUNCTIONS OF THE LOCAL TREASURER,ASSISTANT
LOCAL TREASURER,ANDBARNGAYTREASURER

Section 9. Appointment and Qualifications of the Local Treasurer. - (a) The Local
Treasurer shall be appointed by the Secretary of Finance from a list of at least three (3)
ranking eligible recommendees of the governor or mayor, as the case may be, subject to civil
service law, rules and regulations.

(b) The Local Treasurer shall be under the administrative supervision of the governor or mayor,
as the case may be, to whom he shall report regularly on the tax collection efforts in the
local government unit.

(c) No person shall be appointed Local Treasurer unless he is a citizen of the Philippines,
a
resident of the local goverment unit concerned, of good moral character, a holder of a college

degree preferably in commerce, public administration or law from a recognized college

or
university, and a first grade civil service eligible or its equivalent. He must have acquired

experience in treasury or accounting service for at least five (5) years in the case of the

Provincial or City Treasurer, and three (3) years in the case of the Municipal Treasurer.
(Sec.
470, LGC)

(d) The position of Local Treasurer should be included in the plantilla of personnel in the
local government unit concerned, properly approved by the DBM. The plantilla should
show the fllowing infrmation:

1) Designation of Position;
2) Appropriation or Budget Item Number approved by the sanggunian
concered;
3) Range/Salary Grade of the Position; and
4) Authorized and Actual Salary per annum including the emoluments therein.

The appointment of a Treasurer shall be mandatory for provincial, city and

municipal governments. (Sec. 470, LGC)

The Secretary of Finance shall appoint only fom the list of qualified recommendees nominated
by the local chief executive, and if none is qualified, the Secretary of Finance must return the list
of recommendees to the LCE with the reason therefor, and the LCE must give a new list of
eligible qualified recommendees.
Section 10. Appointment and Qualifications of the Assistant Treasurer. - (a) An Assistant
Treasurer may be appointed by the Secretary of Finance from a list of at least three (3) ranking,
 eligible recommendees of the governor or mayor, subject to civil service law, rules
and regulations.

(b) No person shall be appointed Assistant Treasurer unless he is a citizen of the

Philippines, a resident of the local government unit concerned, of good moral character, a
holder of a college
degree preferably in commerce, public administration, or law from a recognized college or
university, and a first grade civil service eligible or its equivalent. He must have acquired at least
five (5) years experience in the treasury or accounting service in the case of the Assistant
Provincial or City Treasurer, and three (3) years in the case of the Assistant Municipal Treasurer.

The appointment of an Assistant Treasurer shall be optional for the provincial, city and
municipal governments. (Sec. 471, LGC)

Section 11. Delegation by the Secretary of Finance of the Appointing Authority to the
BLGF Executive Director. - The Secretary of Finance delegated to the BLGF Executive
Director the appointing authority over Provincial, City and Municipal Treasurers and their
Assistants, except City and Municipal Treasurers of Metro Manila and their Assistants. (DOF
)
Personnel Order No. 305-2000, October 27, 2000

Section 12. Designation of Officer-In-Charge/In-Charge of Office of Local Treasury

Offices and Acting Assistant Provincial/City/Municipal Treasurers. -

a) Authority of BLGF Regional Directors to designate subject to confirmation of the

BLGF Executive Director. - Whenever a vacancy occurs in the positions of Provincial,
City, and Municipal Treasurers and Assistant Provincial, City, and Municipal Treasurers,
whether of a temporary or permanent nature, occasioned by the absence (official travel,
training or leave); relief, retirement, transfer, resignation or promotion, illness or death, or
any other form of sudden incapacity to perform official duties of the regular incumbent, the
Regional Director shall designate an Officer-In-Charge/In-Charge of Office of the Office of
the Provincial, City, and Municipal Treasurer from the ranks of Provincial/City/Municipal
Treasurers, Assistant Provincial/City/Municipal Treasurers, other ranking officials/personnel
of local treasury offices, Regional Offices and the Central Office, as well as Acting Assistant
Provincial/City/ Municipal Treasurer, for the confirmation of the Executive Director of the
BLGF.

In addition, the designation of OIC/ICO-Municipal Treasurer and Acting Assistant

Provincial/City/Municipal Treasurer shall be recommended by the Provincial/City Treasurer
concerned and upon written consent and/or recommendation by the Local Chief Executive and
endorsed by the Provincial/City Treasurer.

b) Qualifications of the OIC/ICO-Provincial, City, and Municipal Treasurer. - The

proposed designee should meet the minimum qualification requirements of the position
pursuant to the provisions of Sections 470 and 471 of the Local Government Code of l 991
(R.A. 7160)6, except the residence requirement, in case of dearth of recommendees, and must

5
See Sec. 9, this Manual
belong to the local treasury service over which the Secretary of Finance, through the Bureau
of Local Government Finance, exercises administrative and technical supervision. In the
absence of qualified and ranking personnel from the local treasury service, the ranking and
qualified personnel from the local accounting office and other related offices may be
considered, but they must first be detailed by the appointing authority concerned with the
Local Treasury Office to which the recommendee will be assigned before the designation can
be effected.

c) Consent/Approval of Local Chief Executives Required. - Designations of OIC-

Provincial/City/Municipal Treasurers to other local treasury offices shall be with the written
consent/approval of the Local Chief Executives of both LGUs where the designate comes
from and where said designate is being designated, particularly as regard the continued
payment of the salaries and other benefits of the designate by the LGU where he/she is
regularly appointed and the subsequent return to his/her regular station once deemed
necessary and in the absence of any legal impediment.

d) Requirements fr the Relief, Transfer or Detail of Treasurers and Assistant Treasurers.

- Designations of OIC/ICO-Provincial/City/Municipal Treasurers and Acting Assistant
Provincial/City/Municipal Treasurers shall only be made under the grounds cited under
Section 10 (a) of this Manual. Requests for relief, transfer, or detail of Treasurers and
Assistant Treasurers shall be acted upon only for justifiable reasons and after compliance
with the requisites of due process, i.e., the Treasurer consents thereto; there exists a final
audit finding of cash shortage properly validated by the Regional Director and/or his duly
authorized representative and the Treasurer is ordered suspended pursuant to Section 348 of
R. A. 7160; and the Treasurer has been formally charged with a grave offence and the ninety
(90) day preventive suspension has expired, but formal investigation has not yet been
terminated.

e) Period of Designation. - The designation shall be for a period of six (6) months, unless
sooner revoked, with a maximum of two (2) extensions except in case where the Assistant
Treasurer is the one designated OIC/ICO-Treasurer and where the incumbent Treasurer has a
pending administrative and/or criminal case. For monitoring purposes, the Order shall
specifically state the effectivity and expiration dates thereof.

t) Extension of Designation. - Extension of designation need not be recommended by the

Local Chief Executive, except as requested otherwise, and conditioned upon a satisfactory
performance by the designate during the period of designation attested to by the immediate
supervisor, and the absence of any derogatory report and/or adverse information against the
designate received and verified by the Regional Office or the Local Treasury Office.

g) Processing and Submission of Designation. - Except in vacancies caused by the sudden illness,
death or absconding of the incumbent, designations and extensions thereof shall be
processed by the Regional Office within fifteen ( 15) days before the expected temporary or
permanent vacancy and submitted to the Bureau of Local Government Finance for
confirmation within ten (10) days from the issuance of the Order. Non-submission of the
Order for confirmation and/or non-compliance thereof will render subject Order ineffective.
h) Confirmation of Designation by the BLGF Executive Director. - Designation submitted
by the Regional Director for confirmation shall be acted upon by the Executive Director,
Bureau of Local Government Finance within fifteen ( 15) days from receipt thereof,
otherwise, subject designation is deemed approved.

i) Documentation. - Designation submitted to the BLGF fr confirmation

shall be accompanied by the following documents7:

1) Regional Special Personnel Order (RSPO) issued by the BLGF Regional

Director;
2) Comments/Recommendations of the BLGF Regional Director;
3) Recommendation of the Provincial/City Treasurer, in the case of the
OIC/ICO-Municipal Treasurer and Acting Assistant Provincial/City/Municipal
Treasurer;
4) Written Consent and/or Recommendation of the Local Chief Executives
concerned; and
5) Updated Personal Data Sheet (PDS), with passport size photo.

Section 13. Distinction between Officer-in-Charge and In-Charge of Office. -

a) Officer-in-Charge (OIC). - An Officer-in-Charge (OIC) is an official or

employee designated by proper authority in a temporary capacity to discharge fully the
powers and responsibilities of the head of the Local Treasury Office (Provincial, City or
Municipal), with the same rights and prerogatives of the latter, except the right to
receive the salary appurtenant thereto. (Sec. 7. 6, Local Administrative Regulations No. 1-
85, February 7, 1985, Ministr ofFinance)

An OIC-Provincial/City/Municipal Treasurer shall, fr a period of ninety (90) days, continue

to receive his/her salary from his/her regular station.

An OIC-Provincial/City/Municipal Treasurer, if so allowed under the Order of Designation

and by the sanggunian concerned, shall receive per diems at a rate authorized under existing
rules and regulations.

During the incumbency of the OIC-Provincial/City/Municipal Treasurer, he/she shall be

entitled to collect the representation allowances authorized for the vacant position of
Provincial/City/Municipal Treasurer. He/she shall likewise be entitled to collect the Cost of
Living Allowance (COLA)8, bonus, hazard pay, and other emoluments that may be
authorized. (Section 7. 6, Local Administrative Regulations No. 1-85, Ministry of Finance)

b) In-Charge of Office (ICO). - An In-Charge of Office is an official or employee

designated by proper authority in a temporary capacity to discharge the duties and functions
of the head of the Local Treasury Office (Provincial/City/Municipal) in a caretaker capacity
and with

6 DOF Personnel Order No. 335-03, October 1, 2003

7
Integrated Benefit under Sec. I 2, R.A. No. 6758 or the ''Salary Standardization law", implemented by
DBMCCC No. I 0, effective March 16, 1999.
certain limitations of the powers, authority and prerogatives normally exercised by the head
of the office. (Sec. 7.7, Local Administrative Regulations No. 1-85, February 7, 1985,
Minister of Finance)

An ICO may be authorized to collect representation allowances only in instances where

his/her designation was occasioned by the temporary disability, authorized prolonged leave
of absence, or due to an administrative action involving the relief or suspension of the regular
incumbent.

An ICO of a Provincial/City/Municipal Treasury Office shall not have the power to appoint
subordinate officers. (Sec. 7. 7.4, Local Administrative Regulations No. 1-85, February 7,
1985, Ministry of Finance)

Section 14. Automatic Succession of the Assistant Provincial/City Treasurer. - In cases

where the BLGF has not issued an Order of Designation of the OIC/ICO of the
Provincial/City
Treasury Office, the regularly appointed Assistant Provincial/City Treasurer shall,
unless otherwise incapacitated or precluded by legal impediments, automatically assume the

r
duties and functions of the Provincial/City Treasurer in a caretaker capacity to prevent
disruption in the normal and routinely operations of the Local Treasury Office, until the
return to duty of the regular incumbent, or the issuance of the Order of Designation,
with the confirmation of the BLGF Executive Director.9 (Sec. 7.4, Local Administrative
Regulations No. 1-85, February 7, 1985, Minister of Finance

The Assistant Provincial/City Treasurer who automatically assumes as ICO shall within 24 8
hours notify directly the BLGF Regional Director concerned of the absence, sickness, 1
death or other incapacity of the regular incumbent and of the date of his/her assumption in F
a caretaker capacity. (Sec. 7. 4.1, Local Administrative Regulations No. 1-85, February 7,
1985, Ministry of Finance)

Within 48 hours after receipt of the notice, the BLGF Regional Director shall issue the 8

Order of Designation of the Assistant Provincial/City Treasurer or any other M

9
competent officer as ICO/OIC(Sec. 7.4, Local Administrative Regulations No. 1-85),
subject to the requirements M
1
therefor.10
M
Section 15. Automatic Succession of the Assistant Municipal Treasurer. - In cases
where the Provincial/City Treasurer is unable or did not have the opportunity to 1
recommend the designation of an ICO/OIC, or the BLGF Regional Director has not
issued an Order for such designation, the regularly appointed Assistant Municipal I
Treasurer, unless otherwise incapacitated or precluded by legal impediments, shall
automatically assume as !CO or in a caretaker capacity, until the return to duty of the
regular incumbent, or the issuance of an Order of Designation, with the confirmation
of the BLGF Executive Director.11 (Sec. 7.5, Local Administrative Regulations No. 1-

A
The Assistant Municipal Treasurer who automatically assumes as ]CO shall within 24
hours notify the BLGF Regional Director concerned, thru the Provincial Treasurer, of the
absence, sickness, death or other incapacity of the regular incumbent and of the date of his/her
assumption in a caretaker capacity. (Sec. 7.5.1, Local Administrative Regulations No. 1-85,
February 7, 1985, Ministry of Finance)

Within 48 hours after receipt of the notice, the Regional Director shall issue the Order
of Designation of the Assistant Municipal Treasurer or any other competent officer as ICO/OIC
(Sec. 7.5.2, Local Administrative Regulations No. 1-85, Februa1y 7, 1985, Minister of Finance),
subject to the requirements therefr.12

Section 16. Appointment and Qualifications of Barangay Treasurer. -

a) The Barangay Treasurer shall be appointed by the punong barangay with the concurrence
of the majority of all the sangguniang barangay members. The appointment of the Barangay
Treasurer shall not be subject to attestation by the Civil Service Commission.

b) The Barangay Treasurer must be of legal age, a qualified voter, and an actual resident of
the
barangay concerned.

c) No person shall be appointed Barangay Treasurer if he is a sangguniang barangay

member, a government employee, or a relative of the punong barangay within the fourth
(4111) civil degree of consanguinity or affinity. (Sec. 395, LGC)

Section 17. Processing of the Appointments of Provincial, City, and Municipal

Treasurers and Assistant Provincial, City, and Municipal Treasurers. - The appointments of the
Provincial, City, or Municipal Treasurer shall be processed as follows:

a) Nomination of at least three ranking eligible recommendees by the Local Chief Executive;

b) Screening/evaluation of at least three recommendees by the respective Selection

and Promotion Board of the Regional and Central Offices of the BLGF, to determine the
best qualified candidate to the position involved;

c) The evaluation of the qualifications of the recommendees, shall be in accordance with

the
following criteria:

I) Performance Rating - based on the last two (2) Performance Ratings of the
recommendees which should at least be Very Satisfactory.

2) Work Experience - either in the local treasury or accounting services for at least five
(5) years in the case of Provincial or City Treasurer and Assistant Provincial or City Treasurer
and three (3) years in the case of the Municipal Treasurer and Assistant Municipal
Treasurer.

Manual
11
See Sec. 12. this
3) Education - at least college degree preferably in Commerce, Public Administration
or Law from a recognized college or university.

4) Eligibility - First Grade civil service eligibility or its equivalent.

5) Relevant Training - includes the successful completion of training_ courses,

Scholarships, training grants and others relevant to the duties and functions of the position
to be filled-up.

6) Rank- the hierarchy of the vacant position in the organization/office/unit.

d) Submission of the following required documents:

1) Nomination Letter by the LCE

2) Personal Data Sheet (CSC Form No. 212)
3) Position Description Form (BC-CSC Form I)
4 ) Latest Appointment of the recommendee
)5) Diploma or Transcript of Records
6) Certification of Training/s completed
7) Performance Ratings for the last two (2) rating periods prior to the effectivity date of
appointment which should be at least Very Satisfactory (CSC MC No. 38 s. 1993)
8) Report of Civil Service (CSC) Ratings or its equivalent
9) Certification of Residency by the Barangay Chairman or the LCE
10) Certification by the Local Accountant on the availability of funds for the position to
be filled-up
11) Certification by the LCE that the recommendee is not related to him/her within the
fourth civil degree of consanguinity or affinity
12) Copy of Publication of the vacant position
13) Certification of the BLGF Regional Director/Provincial Treasurer that there is no
pending administrative case/complaint on record filed against the proposed appointee
14) Other documents that may be required.

Section 18. Detail or Temporary Assignment of Local Treasurers and Assistant Local
Treasurers. - A detail is the movement of an employee from one department or agency to
another which is temporary in nature, which does not involve a reduction in rank, status or
salary and does not require the issuance of another appointment.

The employee detailed receives his salary only from his mother unit/agency.

Detail shall be allowed only for a limited period in the case of employees
occupying
professional, technical and scientific position. If the employee believes that there is
no
justification for the detail, he may appeal his case to the Civil Service Commission. Pending
the
appeal, the decision to detail the employee shall be executory unless otherwise
ordered by the Commission. (Sec. 8, Rule VII, Omnibus Rules Implementing
Book V of E. 0. No. 2921 Other Pertinent Civil Service Laws)

12 Revised Administrative Code of 1987

Guidelines to be observed regarding the detail or temporary assignment of Local Treasurers and
Assistant Local Treasurers:

a) The salary of an employee detailed or temporarily assigned on a part-time or full-time basis

from a department, bureau or office of the National Government to an LGU particularly the
Local Treasury Office, or from one LGU to another LGU shall be paid by the office
requesting the detail or temporary assignment.

b) The salary of an employee detailed or temporarily assigned on a part-time or full-time basis

from one LGU to another LGU shall be paid either by the LGU requesting the detail or by
the mother LGU depending on the agreement mutually acceptable to both LGUs.

c) Service of an employee covered by items (a) and (b) above shall be considered service
rendered to the mother LGU. (Sec. 216 (2nd par.), Vol./, GAAM

d) The LCE requesting the detail or temporary assignment shall submit a written request to the
Executive Director of the Bureau of Local Government Finance. The request shall state the
name of the employee to be detailed, the period of detail and the reasons for the detail.

e) In case of detail or temporary assignment from one LGU to another LGU, the request for
such detail or temporary assignment shall be approved only upon the concurrence in writing

of the LCE of the LGU where the Local Treasurer or Assistant Local Treasurer sought to be

detailed is permanently appointed or stationed. (DOF Personnel Order No. 335-03, October

1, 2003)

f) Clearance and approval of the Civil Service Commission shall be required for details or
temporary assignment requiring a period exceeding one ( 1) year and involving the
performance of regular and recurring functions in the agency where the Local Treasurer or
Assistant Local Treasurer is to be detailed. (Sec. 216, Vol./, GAAM

g) No detail or reassignment shall be made within three (3) months before any election. (Sec. 5,
Rule XVIII, Omnibus Rules Implementing Book Volume. 0. No. 292 and Other Pertinent Civil

Service Laws)

Section 19. Salaries of Local Treasurers and Assistant Local Treasurers Under
Preventive Suspension. - The proper disciplining authority may preventively suspend any
subordinate officer or employee under his authority pending an investigation, if the charge
against such officer or employee involves dishonesty, oppression or grave misconduct, or neglect
in the performance of duty, or if there are reasons to believe that the respondent is guilty of
charges which would warrant his removal from office. (Sec. 51, Title I, Subtitle A, Book V E. 0.
No. 292)
Any public officer against whom any criminal prosecution under a valid information under R. A.
No. 3019 or the Anti-Graft and Corrupt Practices Act or under the provisions of the Revised
Penal Code on bribery is pending in court, shall be suspended from office. Should he be
convicted by final judgment, he shall lose all retirement or gratuity benefits under any law, but if
he is acquitted, he shall be entitled to reinstatement and to the salaries and benefits which he
failed to receive during suspension, unless in the meantime administrative proceedings have been
filed against him. (Sec. I 3, R. A. 301914)

The Secretary of Finance through the BLGF Executive Director may temporarily relieve or
suspend Provincial, City and Municipal Treasurers and their Assistants (DOF Order No. 305-
2000, October 27, 2000, as amended by DOF Personnel Order No. 321-2000, November 17,
2000), concurrently with the Civil Service Commission (Sec. 29, Rule XIV Omnibus Rules
Implementing Book VolE. 0. No. 292 and Other Pertinent Civil Service Laws) and the Office of the
Ombudsman (Sec. 24, R. A. 677015), pending administrative investigation.

Other provisions applicable on the salaries of Local Treasurers and Assistant Local Treasurers
under preventive suspension:
a) When the administrative case against the officer or employee under preventive suspension is
not finally decided by the disciplining authority within the period of 90 days after the date of

suspension of the respondent who is not a presidential appointee, the respondent shall be
automatically reinstated in the service: Provided, That when the delay in the disposition of
the case is due to the fault, negligence or petition of the respondent, the period of delay shall
not be counted in computing the period of suspension herein provided. (Sec. 52, Bk. V E. 0.
No. 292)

b) A Local Treasurer who is reinstated after having been illegally dismissed is considered as not
having left his office and should be given comparable compensation at the time of his
reinstatement in an amount not exceeding five (5) years salary regardless of whether the
period of illegal dismissal exceeds five (5) years. Such Treasurer cannot be faulted for his
inability to work or render any service as a result of his illegal dismissal because this was not
his own making or liking. If dismissal was due to bad faith or personal malice of superior
officers, they (superior officers) will be held accountable for the Local Treasurer's back
wages (Gabriel vs. Hon. Eufemia C. Domingo, G.R. No. 87420, Sept. 17, 1990)

c) The death of a respondent Treasurer terminates administrative proceedings against him and
entitles his heirs to all the benefits due him together with his unpaid salaries from the date of
his suspension to the date of his death. (411, endorsement, CSC, March 17, 1956)

d) Claims for salaries during preventive suspension shall be supported by the following
documents:

A certified true copy of the order of exoneration or of the court's order dismissing the criminal case
against the employee or absolving him; or

2) A certified true copy of the authority granted by the department head for the payment
of salary during suspension; or

13 Anti-Graft and Corrupt Practices Act

14 Ombudsman Act of 1989
3) A certified true copy of the President's order of exoneration providing for payment of salary
during suspension. (Sec. 220, Vol. I, GAAM

Section 20. Salaries of Local Treasurers and Assistant Local Treasurers During Attendance
in Administrative, Civil or Criminal Investigation. - Absence of a Local Treasurer or
Assistant Local Treasurer is considered service in regular course under the following

circumstances:

a) Witness in a criminal case. - When a Local Treasurer or Assistant Local Treasurer is

summoned by the court or is required by lawful authority to render service as a witness in a
criminal case, such service shall be deemed to be of service in the regular course of
employment and the Local Treasurer or Assistant Local Treasurer shall be entitled to his
salary during the period of such service payable by the office to which he pertains, regardless
of whether he has served for or against the prosecution in such criminal case. (Sec. 226 (a),
Vol. I, GAAM

In case the hearing or trial is conducted outside the LGU where the Local Treasurer or
Assistant Local Treasurer is stationed, he shall automatically be on official travel and shall be
entitled to per diem and transportation expenses, subject to the usual accounting and auditing
rules and regulations. The summons of the Court shall be sufficient evidence in lieu of a
Travel Order.

b) Witness in his own behalf in a criminal or administrative proceeding. - The attendance

of a Local Treasurer or Assistant Local Treasurer in his own behalf, to secure his exoneration
from charges or matter alleged against him is attendance of his own benefit. If he is not under
suspension, the time consumed in such attendance shall be charged to his leave, if he has any.
Upon exoneration, however, when the case in which he is the accused or the respondent is the
direct result of an act performed by him in connection with his official duties, his absence
charged to his leave may be readjusted and his attendance in court considered as service in
due course. But when the criminal charges filed are not the direct act performed by him in
connection with his official duties, forced absences from duty resulting from his arrest and
required attendance in court may not be considered official. He shall not in such case be
entitled to salary.

c) Witness in a civil case between two private parties, and in which the Government has
no interest. - A witness is not obliged to attend as such in a civil action before any court,
judge, justice, or other officer out of the province in which he resides, unless the distance be
less that fifty (50) kilometers from his place of residence to the place of trial by the usual
course of travel. Therefore, a Local Treasurer or Assistant Local Treasurer cited to appear in
a civil case between two private parties wherein the Government has no interest, in order to
testify as to knowledge of fact obtained by him in his official capacity, shall not be entitled to
salary for absence on account of such appearance if the distance from his place of residence
to the place of trial by the usual course of travel be more than fifty (50) kilometers. If the
distance involved is less than fifty (50) kilometers, and the Local Treasurer or Assistant
Local Treasurer is cited as a witness in a civil case involving private persons as litigants for
knowledge or fact acquired by him in his private capacity, his absence will be chargeable
against him without prejudice to his right to seek reimbursement from the party at whose
instance he testified. If such witness testifies on a case from knowledge or fact acquired by
him in his official capacity, or to produce official papers or documents, and the distance
between his place of residence and the place of trial is less than fifty (50) kilometers, his
appearance will be considered service in due course, but in such a case the province, city or
municipality to which he pertains shall collect witness' fees for his appearance under the
conditions prescribed by the Rules of Court. (Sec. 226, Vol. I, GAAM

Section 21. Approval and Grant of Application for Leave of Absence of Local
Treasurers and Assistant Local Treasurers. - The approval of application for leave of
Provincial, City and Municipal Treasurers and Assistant Provincial, City and Municipal
Treasurers shall be as follows:

1. All applications for leave of absence, i. e. vacation, sick, maternity/paternity, and special
privilege leave and terminal leave of Provincial/City/Municipal Treasurer and Assistant
Provincial/City/Municipal Treasurer shall be approved by the BLGF Regional Director,
copies of which shall be furnished to the BLGF Central Office. Where the applicant
intends
to leave the country, the application for leave shall be approved by the Department of
Finance, regardless of the duration.

2. Application for vacation leave of Assistant Provincial/City/Municipal Treasurer for a

period
exceeding fifteen (15) days shall be approved by the BLGF Regional Director. Application
for leave for a period of fifteen (15) days and below shall be approved by the
Provincial/City/Municipal Treasurer, a copy of which shall be furnished the BLGF Regional
Director for proper information.

3. Application for vacation leave and sick leave of Provincial/City/Municipal Treasurer shall be

supported by a request for the designation of an Officer-in-Charge or In-Charge of Office.

Likewise, the LCE concerned shall recommend the approval of said application for leave.

4. Provincial/City/Municipal Treasurer and Assistant Provincial/City/Municipal Treasurer shall

be entitled to special leave privileges (SPL) as mandated under existing laws (Sec. 21, Rule
XVI, Omnibus Rules Implementing Book V of E.O. No. 292). Likewise,
Provincial/City/Municipal Treasurer and Assistant Provincial/City/Municipal Treasurer may
avail of maternity or paternity leave of not more than seven (7) days which shall be non
cumulative and non-commutative, immediately before, during or after the childbirth or
miscarriage of their legitimate spouse. (Sec. 20, Omnibus Rules Implementing Book V of E.O.

No. 292, as amended by CSC Memorandum Circular No. 41, s. 1998)

The special leave privileges to which the Provincial/City/Municipal Treasurer and Assistant
Provincial/City/Municipal Treasurer shall be entitled to are the following:
I. Funeral/Mourning Leave
2. Graduation Leave
3. Enrollment Leave
4. Wedding/Anniversary Leave
5. Birthday Leave
 6. Hospitalization Leave
7. Accident Leave
8. Relocation Leave
9. Government Transaction Leave
10. Calamity Leave

A maximum of three (3) days within a calendar year of any or a combination of the special
leave privileges of their choice may be availed of by the Provincial/City/Municipal Treasurer

and the Assistant Provincial/City/Municipal Treasurer. The SPL may be availed of by the
Provincial/City/Municipal Treasurer and the Assistant Provincial/City/Municipal Treasurer

when the occasion is personal to them or that of their immediate family members.

5.Whenever a Provincial/City/Municipal Treasurer or an Assistant

Provincial/City/Municipal Treasurer retires, voluntarily resigns, or is allowed to resign, or is
separated from the service through no fault of his own, he shall be entitled to the
commutation of all accumulated vacation leave and/or sick leave to his/her credit,
exclusive of Saturdays, Sundays and holidays, without limitation as to the number of days
of vacation leave and sick leave that he/she may accumulate provided his/her leave benefits
are not covered by special law. (Sec. 26, Rule XVI, Omnibus Rules Implementing Book V of
E.O. No. 292, as amended by CSC Memorandum Circular No. 41, s. 1998)

6. When a Provincial/City/Municipal Treasurer or an Assistant

Provincial/City/Municipal Treasurer whose leave credits have been commuted following
his/her separation from the service is re-employed in the Government before the
expiration of the leave commuted, he/she shall no longer refund the money value of the
unexpired portion of his/her leave. Insofar as his/her leave credit is concerned, he/she
shall start from a zero balance in his/her new government office. (Sec.26, Rule XVI of
Omnibus Rules Implementing Book V of E.O. No. 292, as amended by CSC Memorandum
Circular No. 41, s. 1998)

7. A Provincial/City/Municipal Treasurer or an Assistant Provincial/City/Municipal

Treasurer who has accumulated at least fifteen (15) days vacation leave credits shall be
allowed to monetize a minimum of ten (I 0) days; provided, that at least five (5) days are
retained after monetization and, provided further, that a maximum of thirty (30) days may be
monetized in a given year. (Sec. 22, Rule XVI of Omnibus Rules Implementing Book V of E.
0. No. 292, as amended by CSC Memorandum Circular No. 41, s. 1998)

8. A Provincial/City/Municipal Treasurer or an Assistant Provincial/City/Municipal

Treasurer may be allowed to monetize fifty percent (50%) or more of his/her accumulated
vacation or sick leave credits for valid and justifiable reasons such as the following:

1) Health, medical and hospital needs of the Provincial/City/Municipal Treasurer or the

Assistant Provincial/City/Municipal Treasurer or the immediate members of his/her
family;
2) Financial aid or assistance brought about by force majeure events such as calamities,
typhoons, fire, earthquakes and accidents;
3) Educational needs of the Provincial/City/Municipal Treasurer or the Assistant
Provincial/City/Municipal Treasurer or the immediate members of his/her family;

4) Payment for mortgages and loans entered into for the benefit of the
Provincial/City/Municipal Treasurer or Assistant Provincial/City/Municipal Treasurer
or the immediate members of his/her family;

5) Extreme financial needs of the Provincial/City/Municipal Treasurer or Assistant

Provincial/City/Municipal Treasurer or the immediate members of his/her family to
fulfill basic needs for food, shelter and clothing;

The monetization of fifty percent (50%) or more of the accumulated leave credits shall be
upon the favorable recommendation of the LCE and subject to availability of funds. (Sec. 23,
Omnibus Rules Implementing Book V of E.O. No. 292, as amended by CSC Memorandum
Circular No. 41, s. 1998).

i) A Provincial/City/Municipal Treasurer or an Assistant Provincial/City/Municipal

Treasurer with ten (10) days or more vacation leave credits shall be required to go on
vacation leave whether continuous or intermittent for a minimum of five (5) working days
annually. (Sec. 25, Omnibus Rules Implementing Book VolE.O. No. 292, as amended by CSC
Memorandum Circular No. 41, s. 1998)

Chapter 3 ADMINISTRATIVE AND TECHNICAL SUPERVISION BY

THE BUREAU OF LOCAL GOVERNMENT FINANCE

Section 22. Administrative and Technical Supervision. - The Bureau of Local Government
Finance shall exercise administrative and technical supervision and coordination over
the treasury and assessment operations of local governments (Sec. 43, E.O. No. 127). It shall
provide consultative services and technical assistance to local treasurers in the
implementation of programs, policies and regulations on local fiscal matters such as local
taxation, local revenue mobilization, real property assessment as well as administrative
matters on the recruitment, selection and appointment of Local Treasurers and Assistant Local
Treasurers.

The BLGF Regional Offices shall perform the following administrative and technical
functions involving local treasury operations:

a) Supervise and coordinate the conduct of local treasury and assessment operations
of
provinces, cities and municipalities within the region for the proper implementation of laws,
decrees, rules, regulations and administrative issuances of the Department of Finance;

b) Coordinate the plans, programs and activities of local treasury and assessment offices in the
conduct of tax collection drives and tax information and education campaigns;

c) Conduct regional training programs, seminars, workshops and other allied activities from
the improvement of the administrative and technical skills in the local treasury offices;
d) Undertake measures that would lead to efficient administration of local treasury operations
through the following:

1) Conduct periodic supervisory visitation and inspection of the offices of the provincial,
city and municipal treasurers;

2) Conduct periodic monitoring on the progress of collections of real property tax,

business tax and non-tax revenues;

3) Conduct revenue audit to determine the compliance by local treasurers with

applicable laws, rules and regulations;

4) Monitor the implementation by LGUs of national and local tax ordinances and tax
measures;

5) Review, evaluate, and monitor LGU financial and fiscal reports for timely and
accurate submission which are crucial in the target-setting of tax and revenue
collections;

6) Act on administrative matters such as the authorization and regulation of travel,

approval of application for leaves of absence, actions on Certificates of Settlements
and Clearances from money accountabilities of Local Treasurers and Assistant Local
Treasurers.

Chapter 4 ROLES, DUTIES, AND RESPONSIBILITIES OF THE LOCAL

TREASURER

Section 23. Duties and Responsibilities of the Provincial, City, and Municipal Treasurer:

a) Collection of Local Revenues. - All local taxes, fees and charges shall be collected by the
provincial, city, or municipal, or barangay treasurer, or their duly authorized deputies.

The provincial, city or municipal treasurer may designate the barangay treasurer as his
deputy to collect local taxes, fees or charges. ln case a bond is required for the purpose, the
provincial, city or municipal government shall pay the premiums thereon in addition to the
premiums of the bond that may be required under the Local Government Code of 1991. (Sec.
170, LGC)

b) Collection of Real Property Tax. - The collection of the real property tax with interest
thereon and related expenses, and the enforcement of the remedies provided for in Title 2,
Book II of R. A. No. 7160 or the Local Government Code of 1991 or any applicable laws,
shall be the responsibility of the city or municipal treasurer concerned.

The city or municipal treasurer may deputize the barangay treasurer to collect all taxes on
real property located in the barangay: Provided, That the barangay treasurer is properly
bonded for the purpose: Provided, further, That the premium on the bond shall be paid by the
city or municipal government concerned. (Sec. 247, LGC)

c) Custody and Requisition of Accountable Forms. - The treasurer shall be the custodian
of all accountable forms requisitioned by the local government unit. He shall
maintain a complete record of the receipt, issue and transfer of accountable forms.
(Sec 24, COA Circular No. 92-382'6)

Collectors/Tellers shall file requisitions of accountable forms for their use with the treasurer
through a Requisition and Issue Voucher. They shall be accountable for all accountable
forms issued to them. There shall be no transfer of accountable forms
between collectors/tellers. (Sec 25, COA Circular No. 92-382)

d) General Functions. - The treasurer shall take charge of the treasury office, perform
the duties provided for under Book II of the Local Government Code of 1991, and shall:

1) Advise the governor or mayor, as the case may be, the sanggunian, and other local
government and national officials concerned regarding disposition of local
government funds and on such other matters relative to public finance (Sec. 470 (d)

(]), LGC), including amendments to local tax ordinances, identification of fiscal

modalities, development of debt management strategies, identification of investment
opportunities, and others;

2) Take custody and exercise proper management of the funds of the local government
unit concerned (Sec. 470 ( (2), LGC), including effective cash flow forecasting,
analysis of liquidity position and management of surplus cash positions;

3) Take charge of the disbursement of all local government funds and such other funds
the custody of which may be entrusted to him by law or other competent authority
(Sec. 470 (d) (3), LGC), to ensure an effective and efficient management of
expenditure and disbursement levels;

4) Inspect private commercial and industrial establishments within the jurisdiction of the
local government unit concerned in relation to the implementation of tax ordinances,
pursuant to the provisions under Book II of the Local Government Code of 1991;
(Sec. 470 (d) (4)

5) Maintain and update the tax information system of the local government unit; (Sec.
470 (d) (5), LGC)

6) In the case of the provincial treasurer, exercise technical supervision over all treasury
offices of component cities and municipalities; (Sec. 470 (d) (6), LGC)

1
s Circular on Accounting and Auditing Rules and Regulations Designed to Implement Certain Provisions of the LGC
which took effect on July 3, 1992.
 7) Exercise such other powers and perform such other duties as may be prescribed by
law or ordinance. (Sec. 470 (e), LGC)

e) Specific Functions -
1) Certify as to the Availability of Funds. - No money shall be disbursed unless the local
budget officer certifies to the existence of the appropriation that has been legally made
for the purpose, the local accountant has obligated said appropriation, and the local
treasurer certifies the availability of funds for the purpose (Sec. 344, LGC; COA Circular
No. 2006-002, January 31, 2006). It is the primary duty of the local treasurer to certify to
the availability of funds prior to all disbursements from the local treasury, in
conjunction with the certification of the local budget officer on the existence of an
appropriation for the purpose and the certification of the local accountant on the
obligation for the appropriation.

2) Implement Tax Collection and Enforcement Program. - The Local Treasurer is vested
by law to collect and receive all monies accruing to their respective jurisdictions whether
in the form of collectible taxes and other revenues or trust funds pertaining to other
branches or units of government.

3) Prepare and Submit Reports. - The Local Treasurer shall prepare and submit daily
report of collections, with the supporting documents. Likewise, the Local Treasurer shall
accomplish and submit quarterly report of Statement of Income and Expenditures (SIE),
and other reports in forms prescribed by the BLGF.

4) Certify RPT Delinquencies Remaining Uncollected. - The provincial, city or

municipal treasurers or his deputy shall prepare a certified list of all real property tax
delinquencies which remained uncollected or unpaid for at least one (I) year in his
jurisdictions, and a statement of the reason for such non-collection or non-payment and
shall submit the same to the sanggunian concerned on or before the thirty-first (31st) of
December of the year immediately succeeding the year in which the delinquencies were
incurred, with a request for assistance in the enforcement of the remedies for collection
provided in the Local Government Code of 1991. (Sec. 269, LGC).

5) Examine the Books of Accounts and Pertinent Records of Businessmen. - The

provincial, city, municipal or barangay treasurer may by himself or through any of his
deputies duly authorized in writing, examine the books, accounts, and other pertinent
records of any person, partnership, corporation, or association subject to local taxes, fees
and charges in order to ascertain, assess, and collect the correct amount of the tax, fee, or
charge. Such examination shall be made during regular business hours, only once for
every tax period, and shall be certified to by the examining official. Such certificate shall
be made of record in the books of accounts of the taxpayer examined.

In case the examination herein authorized is made by a duly authorized deputy of the
local treasurer, the written authority of the deputy concerned shall specifically state the
name, address, and business of the taxpayer whose books, accounts, and pertinent records
 are to be examined, the date and place of such examination, and the procedure to be
followed in conducting the same.

For this purpose, the records of the revenue district office of the Bureau of Internal
Revenue shall be made available to the local treasurer, his deputy or duly authorized
representative. (Sec. 171, LGC)

6) Submit Certified Statement Covering Income and Expenditures. - The Local

Treasurer shall submit, on or before the fifteenth (15 th) day of July each year, to the LCE
a certified statement covering the income and expenditures of the preceding fiscal year,
the actual income and expenditures of the first two (2) quarters of the current year and the
estimated income and expenditures for the last two (2) quarters of the current year. All
statements of income and expenditures shall be jointly certified by the Local Treasurer
and the Local Accountant.

7) Issue a Certified Statement Covering Actual Income. - On or before the fifh (5th) day
of September each year, the City or Municipal Treasurer, jointly with the City or
Municipal Accountant, shall issue a certified statement covering the actual income of the
past year and the estimates of income of the current and ensuing fiscal years from local
sources, for the barangay concerned. Based on such certified statement, the barangay
treasurer shall submit, on or before the fifteenth (15th) day of September each year, to the
punong barangay a statement covering the estimates of income and expenditures for the
past, current and ensuring fiscal years. (Art. 423 (b), IRR, LGC)

Upon receipt of the statement of income and expenditures from the barangay treasurer,
the punong barangay shall prepare the barangay budget fr the ensuing fiscal year in the
manner and within the period prescribed in the Implementing Rules and Regulations of the
Local Government Code of 1991, and submit the annual barangay budget to the
sangguniang barangay for enactment. (Art. 423 (c), IRR, LGC)

8) Keep Full Sets of Secondary Standards for Use in the Testing of Weights and
Measures. - On the sealing of weights and measures, Municipal Treasurers are shall keep
full sets of secondary standards in their offices for use in the testing of weights and
measures. These secondary standards shall be compared with the fundamental standards
of the Department of Science and Technology (DOST) at least once a year. The sealing
and licensing of weights and measures shall be the duty of Municipal Treasurer and their
deputies. In case of violation, fraudulent practices and unlawful possession or use of
instruments of weights and measures, shall settle an offense involving the commission of
fraud before a case therefore is filed in court, upon payment of a compromise penalty of
not less than Two Hundred Pesos (P 200.00).

9) Register in a Book All Branded and Counter Branded Animals. - On cattle

registration, the Municipal Treasurer shall register in a book properly prepared and kept
for the purpose, all branded and counter branded animals presented for registry, and shall
enter the name and residence of the owner, and the class, color, sex, age, brand, knots of
radiated hair and other marks of identification of the cattle registered. The original
registry entry and the copy thereof issued as a certificate of ownership shall be signed by
the owner and the Municipal Treasurer, and attested to by the Municipal Secretary (Sec.
517, Revised Administrative Code). Upon every transfer of large cattle, the Municipal
Treasurer shall issue to the purchaser of the animal a certificate of transfer showing the
name and residence of the owner/vendor, name and residence of the buyer, purchase
price, identification marks of the animal and the reference to the original certificate of
ownership by number and the name of municipality which issued the certificate. (Sec.
426, RMIT17)

10) See to it that Payment of Taxes of a Business is not Avoided Through Simulation of the
Retirement thereof and Recommend to the Mayor for the Disapproval of the
Application for the Termination or Retirement of the Business. - The Local
Treasurer shall see to it that the payment of taxes of a business is not avoided through
simulation of the termination or retirement thereof. For this purpose, the Local Treasurer
shall observe as follows: a) Assign every application for the termination or retirement of
a business to an inspector from the Local Treasury Office who shall proceed to the
address on record of the business to verify if it is no longer operating. If the inspector
finds that the business is simply placed under a new name, manager and/or a new owner,
the Local Treasurer concerned shall recommend to the LCE for the disapproval of the
application for termination or retirement of the business. Accordingly, the business shall
continue to be liable for the payment of all taxes, fees and charges imposed thereon under
existing local tax ordinances; and b) In the case of a new owner to whom the business
was transferred by sale or other form of conveyance, said new owner shall be liable to
pay the tax or fee for the transfer to him of the business if there is an existing ordinance
prescribing such transfer tax. (Notes on Sec. 145, LGC, p. 120, Philippine Law on Local
Goverment Taxation, Annotated, 2000 Edition, Sofronio B. Ursa!)

11) Attend Sessions of the Sanggunian. - The Local Treasurer, when required and upon
prior approval of the local chief executive, shall attend the sessions of the sanggunian.

12) Exercise Such Other Powers and Functions and Perform Such Other Duties and
Responsibilities. - The Local Treasure shall .exercise such other powers and functions
and perform such other duties and responsibilities as may be prescribed by law or
ordinance, as follows:

a) Withholding Agents of the Bureau of Internal Revenue (BIR); the Government

Service Insurance System (GSIS); Pag-ibig; Philhealth, and the Metro Manila
Development Authority (MMDA) for Metro Manila Local Treasurers.

b) Deputies of the National Government to collect Fire Fees and Alien Registration
Fees.

c) Members of the following Local Committees and Boards:

a. Local Finance Committee (Sec. 316, LGC

16 Revised Manual of Instructions to Treasurers

 b. Bids and Awards Committee (BAC) (R.A. No. 9184/Sec. 364, LGC)
c. Local Prequalification, Bids and Awards Committee (Local PBAC) (Sec.
37, LGC)
d. Local School Boards (Sec. 98 (a), LGC)
e. Appraisal Committee (for purposes of expropriation and purchase of real
property)

d) Duties and functions under the Omnibus Election Code18

Section 24. Duties and Responsibilities of the Assistant Provincial, City, and Municipal
Treasurer:

i.. The Assistant Treasurer shall assist the Treasurer and perform such duties as the latter may
assign to him/her;

ii. The Assistant Treasurer shall have authority to administer oaths concerning notices and
notifications to those delinquent in the payment of the real property tax and concerning
official matters relating to the accounts of the treasurer or otherwise arising in the offices of the
treasurer and the assessor (Sec. 471 (c), LGC); and

iii. In case of the temporary absence of the Treasurer, the Assistant Treasurer shall automatically
perform the functions of the former and shall be fully responsible therefore until the
designation of an Officer-In-Charge or In-Charge of Office by the Department of Finance
19
through the BLGF.

Chapter 5 OTHER ROLES OF THE LOCAL TREASURER

Section 25. Specific Role of the Local Treasurer in the Enactment or Amendment of
Revenue Ordinance of Local Government Units. - The Local Treasurer shall advise and
update the local chief executive, the members of the sanggunian, and other local government and
national officials concerned regarding the disposition of local government funds and
other
matters relating to public finance such as those involving the sourcing and management of funds
that are needed to deliver the basic services and implement developmental projects, as follows:

a. Update on the tax information system. - The Local Treasurer regularly provides updates
on local tax information system, hence, he/she must have a first-hand statistical information
on the collections from local taxes, fees and charges, upon which a continuing evaluation on
the adequacy of collections from said sources in relation to the programs intended to be
financed thereby and the cost of administering these taxes, fees and charges, could be made.

b. Advice on the adequacy of taxes, fees and charges. - The continuing evaluation on the
adequacy of collections will determine the need to increase or decrease the rates of taxes,
fees and charges, so that, the Local Treasurer is duty-pound to advise the sanggunian on the

E. 0. No. 144, March 2, 1987

17

Automatic Succession by the Assistant Local Treasurer at the Provincial/City/Municipal Level under Sections 12 and 13, this
18

Manual
need to increase the rates of taxes, fees and charges to a level sufficient to cover the cost
of operations and developmental programs and projects.

c. Advice on continued relevance of certain impositions. - The Local Treasurer must

also be able to advise the local chief executive and the members of the sanggunian as to
when local impositions should be reduced or removed, such as when the purpose of
an existing imposition has ceased to exist, or if the costs sought to be recovered by the fee
imposed have decreased drastically, or as a matter of strategy, the local chief executive
or sanggunian wants to attract business by reducing certain local impositions.

d. Update on the adjustment of fees and charges. - While the Local Government
Code of 1991, allows the rates of taxes to be adjusted only once every five (5) years,
there is no prohibition for such adjustment insofar as fees and charges are concerned.
The effect of inflation on collections impacts on the capability of the local government
unit to implement programmed activities or to render mandated basic services. The rates
of fees and charges need to be adjusted regularly to offset the effects of inflation. It is
therefore the duty of the Local Treasurer to advise the local chief executive and the
members of the sanggunian on the matter to effect the necessary adjustment.

e. Dissemination of tax ordinances and revenue measures. - Copies of all provincial,

city, and municipal and barangay tax ordinances and revenue measures shall be
furnished the respective Local Treasurer for public dissemination. It is therefore the
duty of the Local Treasurer concerned to disseminate to the public all newly approved
tax ordinances and revenue measures.2°

Section 26. The Role of the Local Treasurer in the Collection of Delinquent Local
Taxes, Fees, Charges, and Related Surcharges:

a) Posting of Notice of Delinquency in the Payment of Real Property Tax. - When the
real property tax or any other tax imposed under Title Two, Chapter 6 of the Local
Government Code of 1991, becomes delinquent, the provincial, city, or municipal
treasurer shall immediately cause a notice of the delinquency to be posted at the main
entrance of the provincial capitol, or city or municipal hall and in a publicly accessible
and conspicuous place in each barangay of the local government unit concerned. (Sec. 254,
LGC)

b) Issuance of a Duly Authenticated Certificate for the Distrain of Personal Property

for the Collection of Delinquent Local Taxes, Fees, or Charges, and Related
Surcharges and Interest. - In the case of distrain of personal property as an administrative
remedy for the collection of taxes, fees or charges, and related surcharges and interest
resulting from delinquency, the local treasurer or his deputy shall issue a duly authenticated
certificate based upon the records of his office showing the fact of delinquency and the
amounts of the tax, fee, or charge and penalty due. Such certificate shall serve as
sufficient warrant for the distrain of personal property, subject to the taxpayer's right to
claim exemption under the provisions of existing laws. (Sec. 175 (a), LGC)

19 Relate to Sec. 23 (d), this Manual)

l
In the case of levy on real property as an administrative remedy for the collection of taxes,
fees or charges and related surcharges and interest resulting from delinquency, the provincial,
city or municipal treasurer, as the case may be, shall prepare a duly authenticated certificate
showing the name of the taxpayer and the amount of the tax, fee, or charge, and the penalty
due from him. Said certificate shall operate with the force of a legal execution throughout
the Philippines. A written notice of the levy shall be mailed to or served upon the assessor
and the Registrar of Deeds of the province or city where the property is located, and to the
delinquent taxpayer. (Sec. 176, LGC)

c) Advertisement and Sale of Delinquent Property. - Within thirty (30) days after levy, the
local treasurer shall proceed to publicly advertise for sale or auction the property or a usable
portion thereof as may be necessary to satisfy the claim and cost of sale; and such
advertisement shall cover a period of at least thirty (30) days. If the taxpayer fails to pay the
taxes, fees, charges, penalties and interests, the sale shall proceed and shall be held either at
the main entrance of the provincial, city, or municipal building, or on the property to be sold,
or at any other place as determined by the local treasurer conducting the sale and specified in
the notice of sale.

Within thirty (30) days after the sale, the local treasurer or his deputy shall make a report of the
sale to the sanggunian concerned, and which shall from part of his records. The local
treasurer shall make and deliver to the purchaser a certificate of sale, showing the
proceedings of the sale, describing the property sold, stating the name of the purchaser and
setting out the exact amount of all taxes, fees, charges, and related surcharges, interests, or
penalties. Any excess in the proceeds of the sale over the claim and cost of sale shall be
turned over to the owner of the property. (Sec. 178, LGC)

d) Issuance of a Certified Statement of Delinquency to the Courts. - In the case of collection of

real property tax or any other tax through the courts, the provincial or city treasurer, or
municipal treasurer shall furnish the provincial attorney or city or municipal legal officer
a certified statement of delinquency who, within fifteen ( 15) days after receipt, shall file the
civil action in the name of the province, city or municipality in the proper court of competent
jurisdiction. If the delinquent tax due does not exceed Ten Thousand Pesos (P 10,000.00), the
competent court is the Municipal or City Trial Court, and if the amount due is in excess of Ten
Thousand Pesos (P I 0,000.00), the proper court is the Regional Trial Court. (Art. 357

(a), JRR, LGC)

Section 27. The Local Treasurer's Role in Other Boards and Committees Created
Pursuant to the Local Government Code of 1991 and Other Laws -

I. Local Finance Committee:

There is hereby created in every province, city, or municipality a local finance committee to be
Composed of the local planning and development officer, the local budget officer, and the local
treasurer. It shall exercise the following functions:

a) Determine the income reasonably projected as collectible for the ensuing fiscal year;
b.) Recommend the appropriate tax and other revenue measures or borrowings which may be
appropriate to support the budget;

c) Recommend to the local chief executive concerned the level of the annual expenditures and

the ceilings of spending for economic, social and general services based on the approved
local development plans;

d) Recommend to the local chief executive concerned the proper allocation of expenditures for

each development activity between current operating expenditures and capital outlays;

e) Recommend to the local chief executive concerned the amount to be allocated fr capital
outlay under each development activity or infrastructure project;

f) Assist the sangguniang panlalawigan in the review and evaluation of budget of component
cities and municipalities in the case of provincial finance committee, the barangay budgets in
the case of city or municipal finance committee, and recommend the appropriate action
thereon;

g) Assist the sanggunian concerned in the analysis and review of annual regular and
supplemental budgets of the respective local government unit to determine compliance with
statutory and administrative requirements; and

h) Conduct semi-annual review and general examination of cost and accomplishments against

the performance standards applied in undertaking development projects.

A copy of this report shall be furnished the local chief executive and the sanggunian
concerned, and shall be posted in conspicuous and publicly accessible places in the
provinces, cities, municipalities and barangays. (Sec. 316, LGC)

II. Local School Boards:

a) There shall be established 1 every province, city, or municipality a provincial, city,

or municipal school board, respectively.

b) The composition of local school boards shall be as follows:

I) The provincial school board shall be composed of the governor and the division
superintendent of schools as co-chairmen; the chairman of the education
committee
of the sangguniang panlalawigan, the provincial treasurer, the representative of the
pederasyon ng mga sangguniang kabataan in the sangguniang panlalawigan, the
duly elected president of the provincial federation of parents-teachers associations,
the duly elected representative of the teachers' organizations in the province, and
the duly elected representative of the non-academic personnel of public schools in
the province, as members;
\

\
2) The city school board shall be composed of the city mayor and the city superintendent
of schools as con-chairmen; the chairman of the education committee of the
sangguniang panlungsod, the city treasurer, the representative of the pederasyon ng
mga sangguniang kabataan in the sangguniang panlungsod, the duly elected
president of the city federation of parents-teachers associations, the duly elected
representative of the teachers' organizations in the city, and the duly elected
representative of the non-academic personnel of public schools in the city, as
members; and

3) The municipal school board shall be composed of the municipal mayor and the
district supervisor of schools as co-chairmen; the chairman of the education
committee of the sangguniang bayan, the municipal treasurer, the representative of
the pederasyon ng mga sangguniang kabataan in the sangguniang bayan, the duly
elected president of the municipal federation of parents-teachers associations, the
duly elected representative of the teachers' organizations in the municipality, and the
duly elected representative of the non-academic personnel of public schools in the
municipality, as members. (Sec. 98 (a) and (b), LGC)

c) The performance of the duties and responsibilities of the abovementioned officials in

their respective local school boards shall not be delegated. (Sec. 98 (d), LGC)

d) The provincial, city or municipal school boards shall:

1) Determine, in accordance with the criteria set by the Department of Education,

Culture and Sports (now Department of Education or DepEd), the annual
supplementary budgetary needs for the operation and maintenance of public schools
within the province, city, or municipality, as the case may be, and the supplementary
local cost of meeting such needs, which shall be reflected in the form of an annual
school board budget corresponding to its share of the proceeds of the special levy on
real property constituting the Special Education Fund and such other sources of
revenue as the Local Government Code of 1991, and other laws and ordinances may
provide;

2) Authorize the provincial, city or municipal treasurer, as the case may be, to disburse
funds from the Special Education Fund pursuant to the budget prepared and in
accordance with existing rules and regulations;

3) Serve as an advisory committee to the sanggunian concerned on educational matters

such as, but not limited to, the necessity and uses of local appropriations for
educational purposes; and

4) Recommend changes in the names of public schools within the territorial jurisdiction
of the local government unit for enactment by the sanggunian concerned. (Sec. 99,
LGC)
e) The co-chairmen and members of the provincial, city or municipal school board shall
perform their duties as such without compensation or remuneration. Members thereof who
are not government officials or employees shall not be entitled to necessary traveling
expenses and allowances chargeable against the funds of the local school board concerned,
subject to existing accounting and auditing rules and regulations. (Sec. 101, LGC)

III. Bids and Awards Committee (BAC):

There shall be in every province, city or municipality a Committee on Awards to decide

the winning bids and questions of awards on procurement and disposal of property.

The Committee on Awards shall be composed of the local chief executive as chairman, the
local
treasurer, the local accountant, the local budget officer, the general services officer, and the
head
of office or department for whose use the supplies are being procured, as members. In case
a
head of office or department would sit in a dual capacity, a member of the sanggunian elected

from among its members shall sit as a member. The Committee on Awards at the barangay
level
shall be the sangguniang barangay. No national official shall sit as a member of the
Committee
on Awards. (Sec. 364, LGC)

Each municipality, city or province shall maintain a Bids and Awards Committee which shall
be composed of one ( 1) representative each from the regular offices under the Office of the
Local Chief Executive such as but not limited to the following: Offices of the
Administrator, the Budget Officer, the Legal Officer, the Engineering Office, and the
General Services Office. The end user office shall always be represented in the BAC. The
BAC members shall be at least five (5) but not more than seven (7) and who shall be
personnel occupying plantilla positions of the LGU. The Local Chief Executive shall
designate the members of the BAC who shall elect among themselves the Chairman and
Vice-Chairman. In no case shall the LCE and /or appointing authority be the Chairman or
member of the BAC. (Sec. 11.2.2, Rule V, IRR, R.A. No. 918421)

The BAC shall have the following functions:

1. Advertise and/or post the invitations to bid;

2. Conduct pre-procurement and pre-bid conferences;
3. Determine the eligibility of prospective bidders;
4. Receive bids and conduct the evaluation of bids;
5. Undertake post-qualification proceedings;
6. Resolve motions for reconsideration;
7. Recommend award of contracts to the LCE or authorized representative.

The BAC shall also prepare the procurement monitoring report covering all
procurement
activities specified in the Annual Procurement Plan (APP), whether ongoing and completed,
costing 50 million and above for goods and infrastructure projects, and
P 5 million and above for consulting services. The report shall cover all activities from
pre
procurement conference to the issuance of notice of award and approval of contract. The
report

An Act Providing for the Modernization and Regulation of the Procurement Activities of the Government and for Other
20

Purposes.
shall be approved by the head of the procuring entity, and submitted to the Government
Procurement Policy Board (GPPB) in printed and electronic format within ten (10) working days
after the end of each semester. The GPPB is an inter-agency board created under the Government
Procurement Reform Act or R. A. No. 9184, chaired by the Secretary of the Department of
Budget and Management to formulate and amend the IRR and the corresponding standard forms
for Procurement, ensure the regular conduct by government entities of procurement training,
preparation of procurement operations manual for all government agencies, and conduct annual

review of the effectiveness of the Procurement Law and recommend amendments thereto as
necessary.

IV. Prequalification, Bids and Awards Committee (Local PBAC):

a) There is hereby created a local prequalification, bids and awards committee in every
province, city, and municipality, which shall be primarily responsible for the conduct of
prequalification of contractors, bidding, evaluation of bids, and the recommendation of
awards concerning local infrastructure projects. The governor or the city or municipal mayor
shall act as chairman with the following as members:

1) The chairman of the appropriations committee of the sanggunian concerned;

2) A representative of the minority party in the Sanggunian concerned, if any, or if there

be none, one (1) chosen by said Sanggunian fom among its members;

3) The local treasurer;

4) Two (2) representatives of non-governmental organizations that are represented in the

local development council concerned, to be chosen by the organizations themselves; and

5) Any practicing certified public accountant from the private sector, to be designated by
the local chapter of the Philippine Institute of Certified Public Accountants, if any.
(Sec. 3 7, LGC)

Representatives of the Commission on Audit shall observe the proceedings of such

committee and shall certify that the rules and procedures for prequalification, bids and
awards have been complied with.

b) The agenda and other information relevant to the meetings of such committee shall be
deliberated upon by the committee at least one (1) week before the holding of such meeting.

All meetings of the committee shall be held in the provincial capitol or the city or municipal
hall. The minutes of such meetings of the committee and any decision made therein shall be
duly recorded, posted at a prominent place in the provincial capitol or the city or municipal
hall, and delivered by the most expedient means to elective local officials concerned.
Section 28. Treasurer’s Role in the National and Local Elections pursuant to the Omnibus
Election Code. - City (not comprising at least one (1) legislative district) and Municipal
Treasurers shall act as Vice-Chairman in City/Municipal Board of Canvassers which shall
canvass election returns coming from the polling places within its jurisdiction. (Sec. 2 (d),
Omnibus Election Code)

Local Treasurers are mandated under the Omnibus Election Code to participate in the national
and local elections in the following capacities:

1) Custodianship of Ballot Boxes and Election Paraphernalia. - The Provincial, City and
Municipal Treasurer shall have custody of ballot boxes and such election paraphernalia,
Supplies and materials as are entrusted to him under the law or rules of the COMELEC and
shall be responsible for their preservation and storage, and for any loss, destruction,
impairment or damage of any election equipment, material or document in their possession
furnished under the Omnibus Election Code. (Sec. 162, Art. XIII, Omnibus Election Code)

In case of destruction or disappearance of any ballot box on Election Day, the Board of
Election Inspectors shall immediately report it to the City or Municipal Treasurer who shall
furnish another box or receptacle as equally adequate as possible. The Election Registrar shall
report the incident and the delivery of a new ballot box to the COMELEC and to the Provincial
Election Supervisor. (Sec. 160, Art. XIII, Omnibus Election Code)

2) Preparation of Emergency Ballots. - In the event of failure to receive the official ballots on
time, or where there are no sufficient ballots for all registered voters or when they are
destroyed and it is impossible to provide other ballots, the City or Municipal Treasurer shall
provide other ballots which shall be similar to the official ones and which shall be uniform
within each polling place. The City/Municipal Treasurer shall immediately report such action to
the COMELEC.

The City/Municipal Treasurer shall not undertake the preparation of emergency ballots
unless the political parties, candidates and the organizations authorized by the COMELEC to
designate watchers have been sufficiently notified to send their representatives and have
agreed in writing to the preparation and use of emergency ballots. (Sec. 182, Art. XVI,
Omnibus Election Code)

3) Record of Quantity and Serial Numbers of Official Ballots and Election Returns.- The
Provincial, City or Municipal Treasurer shall respectively keep a record of the quantity and
Serial numbers of official ballots and election returns furnished the various provinces, cities,
municipalities and polling places, as the case may be. Legible copies of such record shall be
furnished the duly authorized provincial, city or municipal representatives of the ruling party
and the dominant opposition party, and the COMELEC immediately after the distribution is
made of such official ballots and election returns. (Sec. 186, Art. XVI, Omnibus Election
Code)

4) Verification and Distribution of Official Ballots and Election Returns. - The Provincial,
City and Municipal Treasurers, together with the respective watchers of the ruling party and
I
I
I
I
dominant opposition party and COMELEC representatives, shall verify the contents of the
boxes containing the shipment of official ballots, election returns and sample official ballots
received by the said treasurers. The Provincial Treasurers shall keep a record of their receipt
and distribution to each Municipal Treasurer, while the City and Municipal Treasurer shall
each keep a record of their distribution to the Board of Election Inspectors. (Sec. 189, Art.
XVI, Omnibus Election Code)

5) Certification of Serial Number of Election Returns. - The Provincial, City or Municipal

Treasurer shall issue a certification as to the serial number of the election return assigned to a
voting precinct in the case of an election return with a separately printed serial number or
which bears a different serial number from that assigned to the particular polling place. Said
election return shall not be canvassed, unless the Commission shall order in writing for its
canvassing, stating the reason for the variance in serial number. (Sec. 212, Art. XVIII,
Omnibus Election Code)

6) Delivery to and Preservation of Key to Ballot Box by the Provincial Treasurer. - Upon
the termination of the counting of the votes, the used ballots, unused ballots, tally board or
sheet, copy of the election returns and the minutes of proceedings of the Board of Election
Inspectors shall be placed in the ballot box. The ballot box shall be locked with three
padlocks and the keys shall be placed in separate envelopes, sealed and signed by all
members of the board. Said envelopes shall be delivered by a COMELEC representative to
the following: one envelope to the Provincial Treasurer, another to the Provincial Fiscal and
the other to the Provincial Election Supervisor. (Sec. 217, Art. XVJJJ, Omnibus Election
Code)

The Provincial Election Supervisor, the Provincial Treasurer and the Provincial Fiscal shall
keep the envelope containing the keys in their possession intact during the period of three
months following the election. Afer this period, unless the COMELEC has ordered
otherwise, the Provincial Election Supervisor and the Provincial Fiscal shall deliver to the
Provincial Treasurer the envelopes containing the keys under their custody. (Sec. 219, Art.
XVII, Omnibus Election Code)

7) Delivery, Preservation and Disposition of Ballot Boxes. - The ballot box, all supplies of
the BEi and all pertinent papers and documents shall immediately be delivered by the BEi
and the watchers to the City or Municipal Treasurer who shall keep his office open all night
on the day of the election if necessary fr the purpose, and shall provide the necessary
facilities for said delivery at the expense of the city or municipality. The City or Municipal
Treasurer shall on the day after the election require the members of the BEi who filed to
send the objects herein referred to deliver the same to him immediately and acknowledge
receipt thereof in detail. (Art. XVIII, Sec. 217, Omnibus Election Code)

The City and Municipal Treasurer shall keep the ballot boxes under their responsibility for
three months and stored unopened in a secured place, unless the COMELEC orders otherwise
or shall demand them sooner or shall order their preservation for a longer time in connection
with any pending contest or investigation. Upon the lapse of three months and if there is no
order to the contrary, the COMELEC may authorize the City and Municipal Treasurer in the
presence of its representative to open the boxes and bum their contents, except the copy of
the minutes of the voting and the election returns deposited therein which they shall keep.
(Sec. 219, Art. XVJJJ, Omnibus Election Code)

8) Membership in the Municipal Board of Canvassers. - The Municipal Board of Canvassers

shall be composed of the election registrar or a COMELEC representative, as chairman, the
Municipal Treasurer, and the District Supervisor or in his absence any public school principal
in the municipality and one representative from each of the ruling party and the dominant
opposition political party entitled to be represented, as members.

The chairman and the members of the Board of Canvassers shall not be related within the
fourth civil degree of consanguinity or affinity to any of the candidates whose votes will be
canvassed by said board, or to any member of the same board. (Secs. 221-222, Art. XIX
Omnibus Election Code)

9) Delivery and Transmittal of Election Returns. - For the City and Municipal Board of
Canvassers, the copy of the election returns of a polling place intended fr the City or
Municipal Board of Canvassers, duly placed inside a sealed envelope signed and affixed with
the imprint of the thumb of the right hand of all members of the BEI, shall be personally I
II
delivered by the members of the BEi to the City or Municipal Board of Canvassers under the
proper receipt to be signed by all the members thereof. (Sec. 229, Art. XIX Omnibus Election
Code)

10) Safekeeping of Transmitted Election Returns. - The Board of Canvassers shall keep the
ballot boxes containing the election returns in a safe and secured room before and after the
canvass. The door to the room must be padlocked by three (3) locks with the keys kept as
follows: one with the chairman, the other with the representative of the ruling party, and the
other with the representative of the dominant opposition party. (Sec. 230, Art. XIX Omnibus
Election Code)

11) Canvass by the Board of Canvassers. - The Board of Canvassers shall meet not later than
six o'clock in the afternoon of election day at the place designated by the COMELEC to
receive the election returns and to immediately canvass those received. It shall meet
continuously from day to day until the canvass is completed. Subject to reasonable
exceptions, the Board of Canvassers must complete their canvass within 36 hours in
municipalities, 48 hours in cities and 72 hours in provinces. (Sec. 231, Art. XIX Omnibus
Election Code). Violation hereof shall be an election offense punishable with imprisonment
of not less than one year but not more than six years and shall not be subject to probation. In
addition, the guilty party shall suffer disqualification to hold public office and deprivation of
the right of suffrage (Sec. 264, Art. XIX, Omnibus Election Code)

Chapter 6 BONDING OF LOCAL TREASURERS AND OTHER LGU

ACCOUNTABLE OFFICERS

Section 29. Guidelines on Bonding of Local Treasurers and Accountable Officers -

 a) Bonding of Local Treasurers and Accountable Officers. - Every officer of the local
government unit whose duties permit or require the custody of funds,
property/accountable forms shall be covered by a fidelity bond (2.1 Bureau of the
Treasury Order No. 01-95), and such officer shall be accountable and responsible for said
funds and property/accountable forms and for the safekeeping thereof in conformity with
the provisions of law. (Sec. 305 (, LGC; Sec. 101, P. D. No. 1445)

b) Procedure for Bonding:

Due care should be exercised in accomplishing the Request for Bonding ( General Form No. 57)
(A) and the Application for Bond (General Form No. 58 (A) to ensure their correctness and
thus, accelerate action on them. The procedure for bonding shall be as follows:

l) Notice to the Bureau of the Treasury. - Appointment or lawful accession by any person
to a bonded or bendable position or office, shall be notified immediately by the LGU to
the Fiscal Examiner IV of the Bureau of the Treasury in the province or region where
the appointee is assigned. (4.1, Bureau of the Treasury Order No. 01-95)

2) General Form No. 57 (A). - Three (3) copies of General Form No. 57 (A), shall be
used in the notification, request for application, increase, reduction, cancellation or
transfer of a bond, duly signed by the head of agency concerned. (4.2, Bureau of the
Treasury Order No. 01-95)

3) General Form No. 58 (A). - Every applicant for bond shall accomplish General Form No.
58(A) in fur (4) copies, which shall be subscribed and sworn to before any officer
duly authorized by law. (4.3, Bureau of the Treasury Order No. 01-95)

4) Endorsement to the Bureau of the Treasury. - The duly accomplished General Form
No.58 (A) with three (3) photographs in 3" x 4" shall be endorsed by the head of agency
or office concerned to the Fiscal Examiner IV of the Bureau of the Treasury in the
province or region together with the request fr bonding, General Form No. 57 (A), for
approval (4.4, Bureau of the Treasury Order No. 01-95), accompanied by the following:

.  Sworn Statement of Assets and Liabilities as of the date of application and request
fr bonding;
 Latest approved Appointment to bendable position;
 If the position of the applicant is not bendable but applicant is given bondable
duties, Office Order or Designation;
 Proof of Payment of bond premium deposited with an authorized government
depository bank. (4.5 Bureau of the Treasury Order No. 01-95)

c) Bonding for the Barangay Treasurer. - The Barangay Treasurer shall be bonded
in accordance with existing laws in the amount to be determined by the Sangguniang
Barangay but not to exceed Ten Thousand Pesos (¥ l 0,000.00), the premiums of which
shall be paid by the barangay. He shall be bonded with the Fidelity Fund immediately
upon assumption of office.
Section 30. Schedule of Cash Accountability and the Corresponding Bonds. -
The schedule of bonds for Provincial, City, and Municipal Treasurers and other
accountable officers and employees shall be as follows:

A. For Cash -

Minimum Cash Maximum Cash Amount of Bond Bond Premium

Accountability Accountability

2,000.00 5,000.00 75 % of Max. Cash Bond Premium

5,001.00 7,000.00 Accountability Shall not be less than
7,001.00 9,000.00 9,000.00 100.00
9,001.00 12,000.00 11,250.00 150.00
12,001.00 15,000.00 13,500.00 168.75
15,001.00 18,000.00 16,750.00 202.50
18,001.00 21,000.00 18,900.00 251.25
21,001.00 25,000.00 22,500.00 283.50

I
25,001.00 30,000.00 26,250.00 337.50
30,001.00 35,000.00 30,000.00 393.75
35.001.00 40,000.00 37,500.00 450.00
40,001.00 50,000.00 45,000.00 562.50
50,001.00 60,000.00 60,000.00 675.00
60,001.00 80,000.00 75,000.00 900.00
80,001.00 100,000.00 100,000.00 1,125.00
100,001.00 250,000.00 225,000.00 1,500.00
250,001.00 500,000.00 350,250.00 3,375.00
500,001.00 750,000.00 500,000.00 5,253.75
750,001.00 1,000,000.00 1,500,000.00 7,500.00
1,000,001.00 5,000,000.00 3,500,000.00 22,500.00
5,000,001.00 25,000,000.00 4,000,000.00 52,500.00
25,000,001.00 75,000,000.00 5,000,000.00 60,000.00
75,000,001.00 100,000,000.00 75,000.00

10% of their total value rounded off to the nearest hundredth

B. For Accountable Forms -

(I) Cash Tickets

(2) Cattle Registration Certificates
(3) Marriage Certificates

An official/employee who has both money and property accountability, shall be

bonded only once to cover both accountabilities, but the amount of the bond shall be in
accordance with the above schedule, provided however, that the amount of bond shall
not exceed Five Million Pesos
(P 5,000,000.00). (6.2, Bureau of the Treasury Order No.1-99, amending Bureau of the
Treasury Order No. 01-95)

When the maximum amount of the bond is exceeded, the accountable officer and his immediate
supervisor shall take immediate steps to have the excess accountability transferred to another
official/employee who shall then be covered by another bond. (6.3, Bureau of the Treasury
Order No. 01-95)

A bond is personal and therefore not transferable. (7.9, Bureau of the Treasury Order No. 01-95)

Section 31. Accountable Officers Considered Unsafe Risks. - When a bonded official or
employee or applicant for bonding is not, in the judgment, of the Fiscal Examiner IV of the
Bureau of the Treasury, a safe and conservative risk, owing to character, association, or habits,
such fact shall be reported to the head of the concerned LGU who shall cause the removal or
relief of the official or employee from such duties requiring a bond, The decision of the Fiscal
Examiner IV of the Bureau of the Treasury may be appealed to the Treasurer of the Philippines
through the Regional Director of the Bureau of the Treasury whose decision shall be final. (3.1,
Bureau of the Treasury Order No. 01-95)

Section 32. Cancellation of Bond. - An accountable officer or employee who is no longer

accountable by reason of retirement, separation from the service, promotion, transfer to another
position or agency, suspension from office or for any other cause, shall submit immediately a
request fr cancellation of bond using General form No 57 (A) (items 14 to 18 only) to the Fiscal
Examiner IV of the Bureau of the Treasury in the province or region of said accountable
official/employee. (5.1, Bureau of the Treasury Order No. 01-95)

No bonded official or employee shall be given clearance by the LGU from money and property
accountability without proof of bond cancellation as herein required. (5.2, Bureau of the
Treasur Order No. 01-95)

Section 33. The Fidelity Fund. - All bond primary collected by the Bureau of the Treasury
shall constitute the Fidelity Fund.

The Fidelity Fund shall answer for defalcations, shortages and unrelieved accountability after all
possible means of recovery of the amount from the accountable official or employee have been
exhausted or his/her insolvency is declared by a competent court.

The Fidelity Fund shall be available for the payment of court fees incident to civil proceedings to
recover the sum lost.

The Fidelity Fund shall not be used for the following:

1) To replace fines imposed on bonded officials/employees as a result of criminal

conviction for violation of the Revised Penal Code or any penal law;
2) To answer the liability of a bonded official/employee convicted of estafa
through
falsification of public documents in his/her capacity as private individual, and

3) To refund the accountability of a bonded official/employee found short

in accountability but not removed or relieved of the duties. (Sec. 8. 0, Bureau of the
Treasury Order No. 01-95)

Section 34. Validity of Fidelity Bonds. - Approved fidelity bonds are valid for one
(1) year. The bond shall be renewed by the LGU by submitting to the Bureau of the
Treasury the request together with the list of bonded officials and employees subject to
renewal and other attachments such as:

I) Copy of latest Bureau of the Treasury transmittal letter approving the

original/renewed application;

2) Latest copy of Statement of Assets and Liabilities; and

3) Agency certification that applicant has no pending administrative and/or criminal

case

Bonds shall be automatically cancelled at expiration date unless renewed. (7. 7,

Bureau of the Treasury Order No. 1-99, amending Bureau of the Treasury Order No.
01-95)

Section 35. Adjudication of Claims Against the Fidelity Fund. - Any and all claims
against the Fidelity Fund together with all the evidences relating thereto shall be filed
with the Regional Director of the Bureau of the Treasury who shall recommend
appropriate action to the Treasurer of the Philippines. Approval of a claim shall
constitute a legal claim against the Fidelity Fund.

Only approved claims shall be paid from the Fidelity Fund. ( 0, Bureau of the
Treasury Order No. 01-95)